The U.S. Postal Service is launching a pilot program in four cities in an effort to deliver financial services to underserved Americans.

Why should we care?
The launch of financial services delivered at U.S. post offices marks a return of a mode of financial services that was phased out at U.S. post offices more than 50 years ago. The financial-services pilot quietly began last month in Washington, D.C., Baltimore, Falls Church, Virginia, and The Bronx, New York City. Consumers in these cities can go to the post office for check cashing, bill payments, ATM access, expanded money orders, and expanded wire transfers – putting the USPS in competition with some financial-services providers. The aim of the program is to extend money services to around 14 million unbanked and underbanked adults. Postal banking has seen support among Democrats, particularly Sen. Bernie Sanders (I-Vt.) and the Biden-Sanders Unity Task Force, which was part of President Biden’s 2020 campaign platform. Despite the appeal, some industry leaders are skeptical. “I just don’t think the Postal Service is even equipped to compete with the complexity of delivering financial services right now,” Paul Merski, executive vice president for congressional relations at the Independent Community Bankers of America, said in an interview. “Money orders are fine ... but things like underwriting loans, things like checking and savings accounts, that’s a whole different animal.”